Hales' plan to retool urban renewal nears final approval

The Portland City Council cleared the decks Thursday to approve Mayor Charlie Hales sweeping plan to reorganize the citys urban renewal districts, but itll take one final vote.

That vote was set for 11 a.m. Wednesday, March 25 on the entire package, which figures to rank as one of Hales signature accomplishments as mayor.

To get this far required a years worth of negotiations and several rounds of political maneuvering.

This is the first comprehensive reform of urban renewal in the history of urban renewal in the city, Hales said Thursday, as city commissioners vetted some of their final concerns about the proposal.

The package is designed to put more property back on the tax rolls and direct more property taxes to schools and local governments, while allowing more money to spend on newer redevelopment opportunities in the South Waterfront and inner eastside.

Over the next few decades, the plan will shift an estimated $197 million in property taxes to schools and local governments, instead of spending it on urban renewal. However, much of that money wont come for many years. Next year, only about $6 million will be redirected to local governments.

The deal will downsize two of Portlands hugely successful urban renewal districts: Airport Way and the River District, which includes the Pearl District, putting large chunks of both back on the property tax rolls. Hales plan also shifts most urban renewal funds remaining in the River District to support Old Town/Chinatown projects rather than subsidize more Pearl District developments.

Two urban renewal districts that never really got off the ground, the Willamette Industrial district and the Education district downtown, would be terminated, also freeing up that land for the tax rolls. The Willamette district was designed to support a Wacker Siltronic expansion that never occurred. The Education district was largely done to support Portland State University, a priority of former Mayor Sam Adams. But Hales, Adams successor, has other priorities. Some of the land near PSU was added into the North Macadam Urban Renewal Area in the South Waterfront. Hales is shifting the emphasis to redevelopment of PSU-held properties around the new MAX Orange Line that starts service this summer.

Hales also won an extension of the North Macadam district keeping it off the regular tax rolls longer to allow more funds to subsidize the Knight Cancer Research Center on the waterfront and the Zidell waterfront property north and south of the Ross Island Bridge.

Lastly, Hales won a small expansion and extension of the Central Eastside urban renewal district, largely to take advantage of new development opportunities at the Clinton Street MAX station on the new Orange Line there.

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Hales' plan to retool urban renewal nears final approval